FCC Spectrum Auction Authority: Background and Proposals for Extension
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FCC Spectrum Auction Authority: Background
September 28October 12, 2022 , 2022
and Proposals for Extension
Jill C. Gallagher
Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions
Analyst Analystin
and is a finite and valuable resource. It is necessary for companies seeking to provide wireless and is a finite and valuable resource. It is necessary for companies seeking to provide wireless
Telecommunications Telecommunications
services, such as radio broadcasting, mobile communications, and satellite services. In 1934, services, such as radio broadcasting, mobile communications, and satellite services. In 1934,
Policy Policy
Congress created the Federal Communications Commission (FCC), an independent agency, to Congress created the Federal Communications Commission (FCC), an independent agency, to
manage nonfederal use of spectrum. The FCC allocates segments of spectrum for various uses, manage nonfederal use of spectrum. The FCC allocates segments of spectrum for various uses,
Patricia Moloney Figliola
such as radio broadcasting, mobile communications, satellite services, and land mobile radio such as radio broadcasting, mobile communications, satellite services, and land mobile radio
Specialist in Internet and Specialist in Internet and
communications. It grants licenses to nonfederal entities to use specific frequencies within those communications. It grants licenses to nonfederal entities to use specific frequencies within those
Telecommunications Telecommunications
bands and sets terms and conditions on use to serve the public interest, avoid interference bands and sets terms and conditions on use to serve the public interest, avoid interference
Policy Policy
between users, and promote the most efficient use of spectrum. between users, and promote the most efficient use of spectrum.
In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses
for rights to use specific frequencies for commercial wireless communications. That authority for rights to use specific frequencies for commercial wireless communications. That authority
was originally due to expire on September 30, 1998, but Congress has extended it several times. The most recent was originally due to expire on September 30, 1998, but Congress has extended it several times. The most recentextension in
2012, which expires on September 30, 2022, was long-term extension, granted as part of the Middle Class Tax Relief and Job Creation Act of granted as part of the Middle Class Tax Relief and Job Creation Act of
2012 (P.L. 112-96). As the expiration of the FCC’s spectrum auction authority approaches, Congress is considering proposals
to extend it. There is widespread sentiment among Members that Congress should extend the FCC’s auction authority.
However, as of September 28, 2022, Congress has not agreed on the terms of the extension.
On July 27, 2022, the House of Representatives 2012 (P.L. 112-96), was set to expire on September 30, 2022. On September 30, 2022, Congress passed, and the president signed, a continuing resolution (P.L. 117-180, Division C, §101) extending the FCC’s spectrum auction authority through December 16, 2022, allowing the FCC to complete its work on the 2.5 Gigahertz (GHz) auction that closed on August 29, 2022.
Supporters of an extension of the FCC’s auction authority see auctions as an effective means to manage spectrum access and use. During the 117th Congress, Members introduced several pieces of legislation that would extend the FCC’s spectrum auction authority, either as standalone legislation (H.R. 7783) or as part of comprehensive spectrum legislation (H.R. 7624 and S. 4117). On July 27, 2022, the House passed the Spectrum Innovation Act of 2022 (H.R. 7624), which would passed the Spectrum Innovation Act of 2022 (H.R. 7624), which would
extend extendFCCthe spectrum auction authority auction authority through March 2024. Among its other provisions, the bill woulduntil March 31, 2024, require the auction of the 3.1- require the auction of the 3.1-
3.45 gigahertz (GHz)3.45 GHz band, band, and allocate auction revenues to allocate auction revenues to fund fund next-generation 911 improvements and the Secure and 911 improvements and the Secure and
Trusted Communications Network Reimbursement Program—a program to “rip and replace” untrusted equipment from U.S.
telecommunication networks. The bill is under consideration in the Senate. Members are reportedly debating the term of the
extension, the accompanying spending provisions in H.R. 7624, and the legislative vehicle for the extension, whether it be a
standalone bill (H.R. 7624), a continuing resolution (CR), annual appropriations, or some other vehicle.
Some Members assert that comprehensive spectrum legislation that includes extension of FCC auction authorities,
identification of specific spectrum for auction, designation of spectrum auction revenues, and provisions to improve
interagency coordination is integral to effective spectrum management. They maintain that decoupling FCC auction authority
from such legislation, by passing stand-alone, short-term extensions, leaves the agency and industry without planning
certainty and does not address persistent spectrum issues. Other Members favor decoupling the extension of FCC’s spectrum
auction authority to avoid a lapse, and deferring negotiations on a more comprehensive bill until a later date.
If Congress does not reach agreement to extend the FCC’s spectrum auction authority by September 30, 2022, the FCC
would no longer be able to auction spectrum licenses for particular bands. Of particular concern is the FCC’s ongoing auction
of the 2.5 GHz band. Some Members and industry stakeholders are concerned that the lapse in auction authority would limit
the FCC’s ability to complete the auction and issue licenses before its authority expired. In August 2022, FCC Commissioner
Jessica Rosenworcel expressed confidence that the FCC could complete the auction before its auction authority expired, but
also noted that a lapse could limit their ability to issue licenses, which occurs after the auction.
On September 27, 2022, Senate leadership released a draft CR that contains language to extend the FCCTrusted Communications Network Reimbursement Program, and extend the FCC’s auction authority through March 31, 2024. The bill is under consideration in the Senate. The Secure and Trusted Communications Network Reimbursement Program pays to “rip and replace” untrusted equipment from U.S. telecommunication networks.
With the FCC spectrum auction authority extended through December 16, 2022, Members are reportedly debating the duration of a future extension and the best legislative vehicle for the extension, whether in a standalone bill, annual appropriation bill, or some other vehicle. Members are also continuing to discuss the development of a comprehensive spectrum package that would include a further extension among other provisions.
Representative Mike Doyle, Chairman of the Committee on Energy and Commerce’s Subcommittee on Communications and Technology, urged Senate concurrence on H.R. 7624; however, some Senators do not agree with certain elements of the bill. Some Senators support an approach similar to that used in P.L. 112-96, which provided a long-term extension of the FCC’s spectrum auction authority (e.g., 10-year), named several frequency bands for auction, and specified uses for spectrum auction revenue. Given recent spectrum disputes, some Senators would also like to include provisions to improve interagency coordination on spectrum decisions in a comprehensive spectrum bill.
If Congress does not reach agreement to extend the FCC’s spectrum auction spectrum auction
authority authoritythrough December 16, 2022. If it passes, FCC authority would not lapse and it could continue to engage in
spectrum planning and auction activities through December 16, 2022. This report provides a brief history of FCC spectrum
auction authority, legislative activity in the 117th Congress, and a discussion of policy optionsby December 16, 2022, the FCC would no longer be able to auction spectrum licenses for particular bands, potentially creating uncertainty for agencies and industry. Congress could extend the FCC’s auction authority through standalone legislation, such as H.R. 7783, comprehensive legislation, such as H.R. 7624, annual appropriation bills, or some other legislative vehicle. .
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link to page 4 link to page 5 link to page 7 link to page link to page 4 link to page 5 link to page 7 link to page87 link to page 8 link to page 8 link to page 9 link to page 9 link to page link to page 8 link to page 8 link to page 9 link to page 9 link to page 9 link to page 10 link to page 10 link to page 10 link to page 7 link to page 10 link to page 7 link to page 12 link to page 7 link to page 12 link to page 1213 FCC Spectrum Auction Authority: Background and Proposals for Extension
Contents
Introduction ..................................................................................................................................... 1
History of the FCC’s Spectrum Auction Authority ......................................................................... 2
Proposals in the 117th Congress to Extend the FCC’s Spectrum Auction Authority ....................... 4
Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783) ........................5
The 4 Spectrum Innovation Act of 2022 (H.R. 7624) ......................................................................... 5
Spectrum Innovation Act of 2022 (S. 4117) .............................................................................. 5
Senate Hearing: “The Future of Spectrum” ..................................................................................... 6
What Happens IfTemporary Extension of the FCC’s Spectrum Auction Authority Lapses? ................................................ 6
Issues for Congress Through December 16,
2022 .............................................................................................................................................. 6
What Happens If the FCC’s Spectrum Auction Authority Lapses? .......................................... 7
Options for Congress ....................................................................................................................... 7
Discussion ................................................................................................................................. 7
Figures
Figure 1. Timeline of Changes to the FCC’s Spectrum Auction Authority (1981-2022) ..................................... 4 Figure 2.(1981-2022) ....................................................................................................................... 4
Tables
Table 1. FCC Spectrum Authority: Congressional Options............................................................. 9
Contacts
Author Information .......................................................................................................................... 9 10
Congressional Research Service Congressional Research Service
FCC Spectrum Auction Authority: Background and Proposals for Extension
Introduction
Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions
and is a finite and valuable resource. It is necessary for companies seeking to provide wireless and is a finite and valuable resource. It is necessary for companies seeking to provide wireless
services, such as radio broadcasting, mobile communications, and satellite services. In 1934, services, such as radio broadcasting, mobile communications, and satellite services. In 1934,
Congress created the Federal Communications Commission (FCC), an independent agency, to Congress created the Federal Communications Commission (FCC), an independent agency, to
manage nonfederal use of spectrum. The FCC allocates segments of usable and available manage nonfederal use of spectrum. The FCC allocates segments of usable and available
spectrum for various uses, such as radio broadcasting, mobile communications, satellite services, spectrum for various uses, such as radio broadcasting, mobile communications, satellite services,
and land mobile radio communications. It grants licenses to nonfederal entities to use specific and land mobile radio communications. It grants licenses to nonfederal entities to use specific
frequencies within those bands and sets terms and conditions to serve the public interest, avoid frequencies within those bands and sets terms and conditions to serve the public interest, avoid
interference between users, and promote the most efficient use of spectrum. According to the interference between users, and promote the most efficient use of spectrum. According to the
FCC, “Managing the airwaves is arguably the agency’s most important function. Nearly every FCC, “Managing the airwaves is arguably the agency’s most important function. Nearly every
commercial device that transmits a wireless signal on a radio frequency, from AM radios to commercial device that transmits a wireless signal on a radio frequency, from AM radios to
satellites to 5G cell phones, must comply with our rules, from licensing to interference.”1 satellites to 5G cell phones, must comply with our rules, from licensing to interference.”1
In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses
for rights to use specific frequencies for commercial wireless communications. That authority for rights to use specific frequencies for commercial wireless communications. That authority
was originally due to expire on September 30, 1998, but Congress has extended it several times. was originally due to expire on September 30, 1998, but Congress has extended it several times.
The most recent The most recent long-term extension in 2012—through September 30, 2022—was granted as part of the extension in 2012—through September 30, 2022—was granted as part of the
Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96). As the expiration of the
FCC’s spectrum auction authority approaches, Congress is considering proposals to extend it.
There is widespread sentiment among Members that Congress should extend this authority.
Expiration could potentially delay decisions on spectrum, such as enhanced interagency
coordination on spectrum planning and decisions on spectrum auction revenue, and possibly
deferring those decisions to a future Congress. However, as of September 28, 2022, Congress has
not come to an agreement on the terms of the extension.
On July 27, 2022, the House of Representatives passedMiddle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96).
During the 117th Congress, Members introduced several pieces of legislation that would extend the FCC’s spectrum auction authority, either as standalone legislation or as part of comprehensive spectrum legislation. The Spectrum Innovation Act of 2022 (S. 4117), introduced on April 28, 2022, would auction the 3.1-3.45 GHz band of spectrum and would extend the FCC’s auction authority to auction this segment for seven years from the enactment of the bill. The Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783), introduced on May 16, 2022, would extend FCC auction authority through March 31, 2024. On July 27, 2022, the House passed a comprehensive spectrum package, the Spectrum Innovation Act of 2022 the Spectrum Innovation Act of 2022
(H.R. 7624), which would extend FCC auction authority through March 2024. Among its other (H.R. 7624), which would extend FCC auction authority through March 2024. Among its other
provisions, the bill would require the auction of the 3.1-3.45 provisions, the bill would require the auction of the 3.1-3.45gigahertzGigahertz (GHz) band, and allocate (GHz) band, and allocate
auction revenues to fund next generation 911 improvements and the Secure and Trusted auction revenues to fund next generation 911 improvements and the Secure and Trusted
Communications Network Reimbursement Program—a program to “rip and replace” untrusted Communications Network Reimbursement Program—a program to “rip and replace” untrusted
equipment from U.S. telecommunication networks. The bill is under consideration in the Senate.equipment from U.S. telecommunication networks. The bill is under consideration in the Senate.
Members are reportedly debating the term of the extension, the accompanying spending
provisions in H.R. 7624, and the legislative vehicle for the extension, whether it be a standalone
bill (H.R. 7624), a continuing resolution (CR), annual appropriations, or some other vehicle.
On September 27, 2022, Senate leadership released a draft CR that contains language to extend
the FCC spectrum auction authority through December 16, 2022. If it passes, the FCC could
continue to engage in spectrum auction activities, however, only temporarily.
On September 30, 2022, Congress passed and President Biden signed a continuing resolution (CR) that extended the FCC’s spectrum auction authority through December 16, 2022 (P.L. 117-180, Division C, §101). The extension allows the FCC to complete licensing and other activities related to its 2.5 GHz band auction—an auction of frequencies in the 2.5 GHz band that commenced on July 29, 2022, and concluded on August 20, 2022.2 Many Members of Congress have expressed support for extending this authority beyond December 16, 2022, and Members are reportedly debating the term of the extension, specific spending provisions, interagency coordination requirements, and the legislative vehicle for the extension. This report provides a brief history of FCC spectrum auction authority, legislative activity in the This report provides a brief history of FCC spectrum auction authority, legislative activity in the
117th Congress, and a discussion of policy options.117th Congress, and a discussion of policy options.
1 FCC Podcast, 1 FCC Podcast, More than Seven Dirty Words, episode #18, “Going Once, Going Infinitely: How the FCC Went from , episode #18, “Going Once, Going Infinitely: How the FCC Went from
‘Beauty Contests’ to Spectrum Auctions,” January 19, 2021, at https://www.fcc.gov/news-events/podcast. ‘Beauty Contests’ to Spectrum Auctions,” January 19, 2021, at https://www.fcc.gov/news-events/podcast.
2 FCC, “Auction 108: 2.5 GHz Band,” https://www.fcc.gov/auction/108. Congressional Research Service Congressional Research Service
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FCC Spectrum Auction Authority: Background and Proposals for Extension
History of the FCC’s Spectrum Auction Authority
Congress added Section 309(i) to the Communications Act of 1934 in the Omnibus Budget Congress added Section 309(i) to the Communications Act of 1934 in the Omnibus Budget
Reconciliation Act of 1981 (P.L. 97-35),Reconciliation Act of 1981 (P.L. 97-35),23 granting the FCC authority to assign licenses to pre- granting the FCC authority to assign licenses to pre-
qualified applicants by random selection (i.e., lottery). Under the lottery system, these applicants qualified applicants by random selection (i.e., lottery). Under the lottery system, these applicants
would apply for spectrum licenses and the FCC would randomly assign frequencies to them. would apply for spectrum licenses and the FCC would randomly assign frequencies to them.
However, as stated by the FCC in a 1997 report to Congress, the pre-qualification process itself However, as stated by the FCC in a 1997 report to Congress, the pre-qualification process itself
often took many months (20 months in one case), and some license winners had “no intention of often took many months (20 months in one case), and some license winners had “no intention of
providing service to the public” and instead “were eager to trade their license rights for windfall providing service to the public” and instead “were eager to trade their license rights for windfall
profits.”profits.”34
Such profiteering led Congress to grant the FCC authority to conduct auctions to assign spectrum. Such profiteering led Congress to grant the FCC authority to conduct auctions to assign spectrum.
Congress added §309(j) to the Communications Act of 1934 in the Omnibus Budget Congress added §309(j) to the Communications Act of 1934 in the Omnibus Budget
Reconciliation Act of 1993 (P.L. 103-66, §6002),Reconciliation Act of 1993 (P.L. 103-66, §6002),45 which allowed the FCC to use competitive which allowed the FCC to use competitive
bidding (i.e., auctions) to grant spectrum licenses.bidding (i.e., auctions) to grant spectrum licenses.56 The act required the FCC to protect the public The act required the FCC to protect the public
interest and promote specific objectives, such as speeding deployment of new technology and interest and promote specific objectives, such as speeding deployment of new technology and
services to rural regions, increasing competition and diversity among licensees, recovering some services to rural regions, increasing competition and diversity among licensees, recovering some
of the value of this federal resource for the public, and achieving the most efficient use of of the value of this federal resource for the public, and achieving the most efficient use of
spectrum.spectrum.67 By awarding licenses to the highest bidders from a diverse pool and including build- By awarding licenses to the highest bidders from a diverse pool and including build-
out requirements as a condition of licensing, the FCC could ensure that spectrum-holders were out requirements as a condition of licensing, the FCC could ensure that spectrum-holders were
ready and able to use the spectrum, to provide services to consumers in all areas, and to enhance ready and able to use the spectrum, to provide services to consumers in all areas, and to enhance
competition. Under this act, the FCC’s auction authority would have expired on September 30, competition. Under this act, the FCC’s auction authority would have expired on September 30,
1998. 1998.
On August 5, 1997, Congress extended the FCC’s auction authority for 10 years through the On August 5, 1997, Congress extended the FCC’s auction authority for 10 years through the
passage of the Balanced Budget Act of 1997 (P.L. 105-33, §3002), allowing the FCC to use passage of the Balanced Budget Act of 1997 (P.L. 105-33, §3002), allowing the FCC to use
competitive bidding for license applications through September 30, 2007. competitive bidding for license applications through September 30, 2007.
The Deficit Reduction Act of 2005 (P.L. 109-171, §3003), enacted February 8, 2006, extended The Deficit Reduction Act of 2005 (P.L. 109-171, §3003), enacted February 8, 2006, extended
FCC auction authority for four years, through September 30, 2011. The act specified that $7.363 FCC auction authority for four years, through September 30, 2011. The act specified that $7.363
billion of proceeds from the authorized auctions be applied to deficit reduction. It also set aside a billion of proceeds from the authorized auctions be applied to deficit reduction. It also set aside a
portion of the proceeds for digital television transition and public safety communications, and portion of the proceeds for digital television transition and public safety communications, and
created the Digital Television Transition and Public Safety Fund.created the Digital Television Transition and Public Safety Fund.78
The Digital Television Delay Act (P.L. 111-4, §5), enacted February 11, 2009, extended FCC The Digital Television Delay Act (P.L. 111-4, §5), enacted February 11, 2009, extended FCC
auction authority for one year, through September 30, 2012, to manage the auctions mandated auction authority for one year, through September 30, 2012, to manage the auctions mandated
under P.L. 109-171. under P.L. 109-171.
The Middle-Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96, Title VI) included The Middle-Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96, Title VI) included
several spectrum-related provisions. It established a process for television broadcasters to release several spectrum-related provisions. It established a process for television broadcasters to release
23 See Communications Act of 1934, as amended (§309(i)), at https://transition.fcc.gov/Reports/1934new.pdf. See Communications Act of 1934, as amended (§309(i)), at https://transition.fcc.gov/Reports/1934new.pdf.
34 Federal Communications Commission, Federal Communications Commission, Report to Congress on Spectrum Auctions, FCC 97-353, adopted September , FCC 97-353, adopted September
30, 1997, released October 9, 1997, p. 7, at https://wireless.fcc.gov/auctions/data/papersAndStudies/fc970353.pdf. 30, 1997, released October 9, 1997, p. 7, at https://wireless.fcc.gov/auctions/data/papersAndStudies/fc970353.pdf.
45 The Omnibus Budget Reconciliation Act of 1993, P.L. 103-66, §6002, 107 Stat. 312, 387-392. The Omnibus Budget Reconciliation Act of 1993, P.L. 103-66, §6002, 107 Stat. 312, 387-392.
56 Sections 309(j)(7) and (8) discuss treatment of revenue from spectrum auctions, and state that the FCC may not base a Sections 309(j)(7) and (8) discuss treatment of revenue from spectrum auctions, and state that the FCC may not base a
finding of public interest, convenience, and necessity solely or predominantly on the expectation of federal revenue. finding of public interest, convenience, and necessity solely or predominantly on the expectation of federal revenue.
67 FCC, FCC, In the Matter of Proposals to Reform the Commission’s Comparative Hearing Process to Expedite the
Resolution of Cases (Gen. Docket No. 90-264), Notice of Proposed Rulemaking, May 10, 1990, p. 4050, at (Gen. Docket No. 90-264), Notice of Proposed Rulemaking, May 10, 1990, p. 4050, at
https://www.fcc.gov/document/amendment-proposals-reform-comparative-hearing-process-expedite. https://www.fcc.gov/document/amendment-proposals-reform-comparative-hearing-process-expedite.
78 For more information, see CRS Report R40674, For more information, see CRS Report R40674, Spectrum Policy in the Age of Broadband: Issues for Congress, by , by
Linda K. Moore. For further information, congressional readers may contact Jill C. Gallagher or Patricia Moloney Linda K. Moore. For further information, congressional readers may contact Jill C. Gallagher or Patricia Moloney
Figliola. Figliola.
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link to page 7 link to page 7 FCC Spectrum Auction Authority: Background and Proposals for Extension
spectrum licensed to them and for the FCC to auction that spectrum for commercial use. It spectrum licensed to them and for the FCC to auction that spectrum for commercial use. It
included provisions to auction certain spectrum and apply revenues from those auctions toward included provisions to auction certain spectrum and apply revenues from those auctions toward
deficit reduction. It also required revenues be used to establish a new agency to manage the deficit reduction. It also required revenues be used to establish a new agency to manage the
public safety broadband network (First Responder Network Authority), to build out that network, public safety broadband network (First Responder Network Authority), to build out that network,
and to fund several new public safety programs and initiatives. The act (§6405) also extended the and to fund several new public safety programs and initiatives. The act (§6405) also extended the
FCC’s auction authority for 10 years, through September 30, 2022. FCC’s auction authority for 10 years, through September 30, 2022.
The Spectrum Pipeline Act of 2015, which was included as Title X in the Bipartisan Budget Act The Spectrum Pipeline Act of 2015, which was included as Title X in the Bipartisan Budget Act
of 2015 (P.L. 114-74), requires the FCC to auction certain spectrum as specified in Section of 2015 (P.L. 114-74), requires the FCC to auction certain spectrum as specified in Section
1004(a) of the act. The act extends FCC auction authority for this spectrum through September 1004(a) of the act. The act extends FCC auction authority for this spectrum through September
30, 2025.30, 2025.
A “spectrum pipeline plan” refers to the federal government selecting specific frequencies for auction and setting the timeline for conducting these auctions. Figure 1 illustrates the timeline of changes to the FCC’s spectrum auction authority, which is due illustrates the timeline of changes to the FCC’s spectrum auction authority, which is due
to expire on September 30, 2022, except for certain spectrum auctioned under the authority of the to expire on September 30, 2022, except for certain spectrum auctioned under the authority of the
Spectrum Pipeline Act of 2015. Spectrum Pipeline Act of 2015.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Figure 1. Timeline of Changes to the FCC’s Spectrum Auction Authority
Figure 2.(1981-2022)
Source: CRS. CRS.
Proposals in the 117th Congress to Extend the FCC’s
Spectrum Auction Authority
WithIn anticipation of the FCC’s spectrum auction authority the FCC’s spectrum auction authority set to expirepotentially expiring on September 30, on September 30, 2022, some Members introduced legislation during the 117th Congress to extend it. 2022, there are several
legislative proposals in the 117th Congress to extend this authority, described below. As of mid-
September 2022, media reports indicate that Congress had not come to agreement on the terms of
the extension.8
8 Jimm Phillips, “Strong Chance CR Includes Short FCC Spectrum Authority Renewal Amid Talks,” Communications
Daily, September 12, 2022.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Extending America’s Spectrum Auction Leadership Act of 2022
(H.R. 7783)
The Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783), introduced on The Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783), introduced on
May 16, 2022, would extend FCC auction authority through March 31, 2024 (i.e., 18 months May 16, 2022, would extend FCC auction authority through March 31, 2024 (i.e., 18 months
from its September 30, 2022, expiration). The House Energy and Commercefrom its September 30, 2022, expiration). The House Energy and Commerce, Committee’s
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Subcommittee on Subcommittee on
Communications and Technology approved the bill on June 15, 2022, with bipartisan support. Communications and Technology approved the bill on June 15, 2022, with bipartisan support.
The Spectrum Innovation Act of 2022 (H.R. 7624)
The Spectrum Innovation Act of 2022 (H.R. 7624), introduced on April 28, 2022, was passed by The Spectrum Innovation Act of 2022 (H.R. 7624), introduced on April 28, 2022, was passed by
the House on July 27, 2022 (H.Rept. 117-429), and referred to the Senate Committee on the House on July 27, 2022 (H.Rept. 117-429), and referred to the Senate Committee on
Commerce, Science, and Transportation. The bill, as passed by the House, would extend the Commerce, Science, and Transportation. The bill, as passed by the House, would extend the
FCC’s spectrum auction authority through March 31, 2024 (the same timeline proposed and FCC’s spectrum auction authority through March 31, 2024 (the same timeline proposed and
approved by the House Energy and Commerceapproved by the House Energy and Commerce, Committee’s Subcommittee on Communications and Subcommittee on Communications and
Technology in H.R. 7783). Technology in H.R. 7783).
This bill would also specify a process for auctioning a segment of spectrum between This bill would also specify a process for auctioning a segment of spectrum between3100
megahertz (MHz) and 3450 MHz3.1 GHz and 3.45 GHz for nonfederal use, shared federal and nonfederal use, or a for nonfederal use, shared federal and nonfederal use, or a
combination of uses. Specifically, the bill would allow federal entities operating in the band (i.e., combination of uses. Specifically, the bill would allow federal entities operating in the band (i.e.,
Department of Defense (DOD)) to use funding from the Spectrum Relocation Fund9 for the Department of Defense (DOD)) to use funding from the Spectrum Relocation Fund9 for the
purpose of research and development, engineering studies, economic analyses, activities with purpose of research and development, engineering studies, economic analyses, activities with
respect to reconfiguring systems,10 or other planning activities to make spectrum available for respect to reconfiguring systems,10 or other planning activities to make spectrum available for
nonfederal or shared federal and nonfederal use. Among other things, the bill would establish the nonfederal or shared federal and nonfederal use. Among other things, the bill would establish the
Public Safety and Secure Networks Fund and direct a portion of spectrum auction proceeds for Public Safety and Secure Networks Fund and direct a portion of spectrum auction proceeds for
specific purposes. The bill would provide $3.08 billion in spectrum auction revenues to specific purposes. The bill would provide $3.08 billion in spectrum auction revenues to
supplement the Secure and Trusted Communications Networks Reimbursement Program—a supplement the Secure and Trusted Communications Networks Reimbursement Program—a
program that reimburses telecommunications providers for replacing equipment that poses risks program that reimburses telecommunications providers for replacing equipment that poses risks
to national security and safety.11 Additionally, the bill would also make available $10 billion from to national security and safety.11 Additionally, the bill would also make available $10 billion from
such revenues to improve 911 systems and services. such revenues to improve 911 systems and services.
Some in the House and Senate are reportedly discussing this bill, but as of late September 2022,
they have not come to agreement on the details.12
Spectrum Innovation Act of 2022 (S. 4117)
The Spectrum Innovation Act of 2022 (S. 4117), introduced on April 28, 2022, would auction the The Spectrum Innovation Act of 2022 (S. 4117), introduced on April 28, 2022, would auction the
3.1-3.45 GHz band of spectrum and would extend the FCC’s auction authority to auction this 3.1-3.45 GHz band of spectrum and would extend the FCC’s auction authority to auction this
segment for seven years from the segment for seven years from the date of enactment of the bill. The bill directs the Office of Management enactment of the bill. The bill directs the Office of Management
and Budget to transfer funding from the Spectrum Relocation Fund to federal entities to plan and and Budget to transfer funding from the Spectrum Relocation Fund to federal entities to plan and
conduct studies to facilitate the reallocation, with oversight from the National conduct studies to facilitate the reallocation, with oversight from the National
Telecommunications and Information Administration (NTIA) and the Executive Office of the President. It requires the Department of Commerce (DOC) to identify 200 MHz for reallocation and to work with DOD, FCC, and the White House Office of Science and Technology Policy to make spectrum available for new uses, while also protecting incumbent users. The bill was referred to the Committee on Commerce, Science, and Transportation.
9 As authorized by the Commercial Spectrum Enhancement Act, Title II of P.L. 108-494, the Spectrum Relocation 9 As authorized by the Commercial Spectrum Enhancement Act, Title II of P.L. 108-494, the Spectrum Relocation
Fund provides a centralized and streamlined funding mechanism through which federal agencies can recover the costs Fund provides a centralized and streamlined funding mechanism through which federal agencies can recover the costs
associated with relocating their radio communications systems or sharing the reallocated spectrum. associated with relocating their radio communications systems or sharing the reallocated spectrum.
10 The auction of the 3.1-3.45 GHz band was authorized in the Infrastructure Investment and Jobs Act (P.L. 117-58, 10 The auction of the 3.1-3.45 GHz band was authorized in the Infrastructure Investment and Jobs Act (P.L. 117-58,
§90008(b)); H.R. 7624 proposes to repeal §90008. §90008(b)); H.R. 7624 proposes to repeal §90008.
11 For more information on the program, see CRS Insight IN11663, 11 For more information on the program, see CRS Insight IN11663, Secure and Trusted Communications Networks
Reimbursement Program: Frequently Asked Questions, by Jill C. Gallagher. , by Jill C. Gallagher.
12 Jimm Phillips, “Strong Chance CR Includes Short FCC Spectrum Authority Renewal Amid Talks,” Communications
Daily, September 12, 2022.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Telecommunications and Information Administration (NTIA) and the Executive Office of the
President. It requires the Department of Commerce (DOC) to identify 200 MHz for reallocation
and to work with DOD, FCC, and the White House Office of Science and Technology Policy to
make spectrum available for new uses, while also protecting incumbent users. The bill was
referred to the Committee on Commerce, Science, and Transportation.
Congressional Research Service 5 FCC Spectrum Auction Authority: Background and Proposals for Extension Senate Hearing: “The Future of Spectrum”
On August 2, 2022, the Senate Committee on Commerce, Science, and Transportation’s On August 2, 2022, the Senate Committee on Commerce, Science, and Transportation’s
Subcommittee on Communications, Media, and Broadband held a hearing, “The Future of Subcommittee on Communications, Media, and Broadband held a hearing, “The Future of
Spectrum.”Spectrum.”1312 Senator Ben Ray Luján, Chair of the Subcommittee, Senator Roger Wicker, ranking Senator Ben Ray Luján, Chair of the Subcommittee, Senator Roger Wicker, ranking
member of the full committee, and Senator John Thune, ranking member of the subcommitteemember of the full committee, and Senator John Thune, ranking member of the subcommittee,
noted the importance of renewing the FCC’s spectrum authority in their opening statements. noted the importance of renewing the FCC’s spectrum authority in their opening statements.
Many Many committee members expressed support for a short-term extension of FCC authority, continued work members expressed support for a short-term extension of FCC authority, continued work
on a long-term spectrum strategy, and enhanced coordination between the FCC and NTIA to on a long-term spectrum strategy, and enhanced coordination between the FCC and NTIA to
balance commercial and federal agency needs.balance commercial and federal agency needs.1413
Industry witnesses supported approval of a short-term extension to ensure FCC authority does not Industry witnesses supported approval of a short-term extension to ensure FCC authority does not
lapse, especially as the FCC was (at the time of the hearing), conducting the auction of 2.5 GHz lapse, especially as the FCC was (at the time of the hearing), conducting the auction of 2.5 GHz
spectrum. They also asserted that a short-term extension would allow Congress and agency spectrum. They also asserted that a short-term extension would allow Congress and agency
stakeholders time to develop comprehensive spectrum legislation that would, among other stakeholders time to develop comprehensive spectrum legislation that would, among other
things,things,15 identify a spectrum pipeline identify a spectrum pipeline (i.e., specific frequencies for auction) and determine how to and determine how to
spend spectrum auction revenues.spend spectrum auction revenues.1614 A witness from Public Knowledge, a public interest group, A witness from Public Knowledge, a public interest group,
argued that a longer-term extension or permanent extension could facilitate long-term planning to argued that a longer-term extension or permanent extension could facilitate long-term planning to
make spectrum available for a variety of users, protect the public interest in spectrum decisions, make spectrum available for a variety of users, protect the public interest in spectrum decisions,
and to ensure spectrum auction revenues benefit public interest objectives.and to ensure spectrum auction revenues benefit public interest objectives.17
What Happens If15
Temporary Extension of the FCC’s Spectrum Auction
Authority Lapses?
If Congress does not reach agreement to extendAuthority Through December 16, 2022 Division C, Title I, Section 101 of the Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023 (P.L. 117-180) extended the FCC’s spectrum auction authority the FCC’s spectrum auction authority byfrom September 30, 2022, to December 16, 2022. It does not include any other spectrum provisions (e.g., spectrum pipeline, discussion of auction proceeds, coordination requirements). The Senate included the auction authority language in the bill and passed it on September 29, 2022, the House passed the bill on September 30, 2022, and the President Biden signed the bill into law on September 30, 2022.
Congress is continuing to discuss a broader spectrum package and focusing debate on the term of the extension and on the accompanying provisions covering exact frequencies for auction (i.e., spectrum pipeline), spending provisions, and interagency coordination.16
12
September 30, 2022, the FCC would no longer be able to auction spectrum licenses for particular
bands. Of particular concern is the FCC’s ongoing auction of the 2.5 GHz band. Some Members
and industry stakeholders are concerned that the lapse in auction authority would limit the FCC’s
ability to complete the auction and issue licenses before its authority expired.18 In August 2022,
13 U.S. Congress, Senate Committee on Commerce, Science, and Transportation, Subcommittee on Communication, U.S. Congress, Senate Committee on Commerce, Science, and Transportation, Subcommittee on Communication,
Media, and Broadband, Media, and Broadband, Future of Spectrum, 117th Cong., 2nd sess., August 2, 2022, at , 117th Cong., 2nd sess., August 2, 2022, at
https://www.commerce.senate.gov/2022/8/future-of-spectrum. https://www.commerce.senate.gov/2022/8/future-of-spectrum.
1413 See opening statements of Senators Luján, Wicker, and Thune See opening statements of Senators Luján, Wicker, and Thune,. “Senate Hearing on Wireless Spectrum,” C- “Senate Hearing on Wireless Spectrum,” C-
SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. This link SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. This link
allows for full text searching of the video, as well as filtering by speaker. allows for full text searching of the video, as well as filtering by speaker.
15 A “spectrum pipeline plan” refers to the federal government selecting specific frequencies for auction and setting the
timeline for conducting these auctions.
1614 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120- “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-
1/1/senate-hearing-wireless-spectrum. (See opening statements of Meredith Atwell Baker, President and chief executive senate-hearing-wireless-spectrum. (See opening statements of Meredith Atwell Baker, President and chief executive
officer of CTIA, a wireless industry organization (00:23:58)). officer of CTIA, a wireless industry organization (00:23:58)).
1715 Ibid. (See statement of Christopher Lewis, President, Public Knowledge (00:21:49)). 16 Jimm Phillips and Howard Buskirk, “Congress Extends Spectrum Bill Talks via FCC Stopgap, but Stumbling Blocks Remain,” Communications Daily, October 3, 2022, https://communicationsdaily.com/article/view?search_id=598344&p=1&id=1377718&BC=bc_633f1107cf33d.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
What Happens If the FCC’s Spectrum Auction Authority Lapses? If Congress does not reach agreement to extend the FCC’s spectrum auction authority by December 16, 2022, the FCC will no longer be able to auction spectrum licenses, potentially creating uncertainty for the FCC and industry on future spectrum availability.
Additionally, the 117th Congress will end on January 3, 2023. Thus, any legislation previously introduced in the 117th (e.g., H.R. 7624), would need to be reintroduced in the 118th Congress to be considered.
Options for Congress There are four key elements to the proposals under consideration to extend the FCC’s spectrum auction authority:
the duration of the extension (short-term versus long-term), whether and how to codify interagency coordination between the FCC and NTIA, selection of the specific bands of spectrum to include in the future spectrum
pipeline, and
funding priorities for auction revenues.
Discussion Some Members assert that a long-term extension of the FCC’s spectrum auction authority must be integral to any comprehensive spectrum legislation, similar to that which was included in P.L. 112-96, Title VI.17 That legislation included provisions addressing spectrum auction revenue allocation, a spectrum pipeline, and an extension of FCC spectrum auction authority. Those Members contend that a spectrum pipeline and spectrum authority gives both agencies and industry planning certainty.18
The Senate may consider H.R. 7624, which the House passed Ibid. (See statement of Christopher Lewis, President, Public Knowledge (00:21:49)).
18 Ibid. (See statement of Senator Ben Ray Luján (02:10:07)).
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FCC Spectrum Auction Authority: Background and Proposals for Extension
FCC Commissioner Jessica Rosenworcel expressed confidence that the FCC could complete the
auction before its auction authority expired, but also noted that a lapse could limit their ability to
issue licenses,19 which occurs after the auction. The FCC announced on September 1, 2022, that
the auction was closed, but as of September 27, 2022, had not publicly stated that it had granted
the licenses.20 The concern remains that if Congress does not extend the FCC’s auction authority,
it may affect the FCC’s ability to grant licenses to the 2.5 GHz auction winners.
Issues for Congress
The House passed H.R. 7624 on July 28, 2022. The bill would extend the FCC’s spectrum on July 28, 2022. The bill would extend the FCC’s spectrum
auction authority through March 31, 2024auction authority through March 31, 2024 (18 months), authorize the auction of the 3.1-3.45 GHz , authorize the auction of the 3.1-3.45 GHz
segment of spectrum, segment of spectrum,and designate $3.08 billion in spectrum auction revenues to supplement the designate $3.08 billion in spectrum auction revenues to supplement the
Secure and Trusted Communications Networks Reimbursement Program, and Secure and Trusted Communications Networks Reimbursement Program, and provide $10 billion to $10 billion to
improve 911 systems and services. The House requested concurrence from the Senate on July 28, improve 911 systems and services. The House requested concurrence from the Senate on July 28,
2022; the Senate referred it to the Senate Committee on Commerce, 2022; the Senate referred it to the Senate Committee on Commerce, Science, and Transportation.Science, and Transportation.
Some Members assert that a long-term extension of the FCC’s auction authority is integral to
comprehensive spectrum legislation that includes approaches to auction revenue allocation, a
spectrum pipeline (e.g., designation of specific spectrum to auction), interagency coordination
requirements, and funding provisions and that decoupling FCC auction authority from other
spectrum provisions by passing stand-alone, short-term extensions leaves the agency and industry
without planning certainty.21
The Chair of the Senate Committee on Commerce, Science and Transportation, Senator Maria The Chair of the Senate Committee on Commerce, Science and Transportation, Senator Maria
Cantwell, opposed the 18-month extension in H.R. 7624, and expressed interest in developing a Cantwell, opposed the 18-month extension in H.R. 7624, and expressed interest in developing a
spectrum package that includes a long-term extension, addresses interagency coordination on spectrum package that includes a long-term extension, addresses interagency coordination on
spectrum, and includes Senate Commerce spectrum, and includes Senate Commerce Committee input on policy and funding priorities.19 17 Jimm Phillips and Howard Buskirk, “Congress Extends Spectrum Bill Talks via FCC Stopgap, but Stumbling Blocks Remain,” Communications Daily, October 3, 2022, Congress Extends Spectrum Bill Talks Via FCC Stopgap, but Stumbling Blocks Remain (communicationsdaily.com). 18input on policy and funding priorities.22 Senator
Cantwell has also stressed the need for an assessment of spectrum needs to aid long-term
planning,23 interagency coordination,24 and consensus on funding initiatives.25 In the past, Senator
19 John Eggerton, “FCC’s Jessica Rosenworcel: No Worries About Authority Sunset, 2.5 GHz Auction,” Multichannel
News, August 5, 2022, at https://www.nexttv.com/news/fccs-jessica-rosenworcel-no-worries-about-authority-sunset-
25-ghz-auction.
20 As of September 27, 2022, the FCC has not issued a public notice that it granted licenses. Per the FCC’s 2.5 GHz
auction website (https://www.fcc.gov/auction/108/releases), the 2.5 GHz auction (Auction 108) closed on September 1,
2022. Down payments and FCC forms were due September 16, 2022, and the final payment due date is September 30,
2022. On September 20, 2022, the FCC extended certain deadlines (e.g., final payments) for those affected by
Hurricane Fiona.
21 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-“Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-
1/1/senate-hearing-wireless-spectrum. (Seesenate-hearing-wireless-spectrum. (See opening statements. (See statement of Senator John Thune (0:14:38)). statement of Senator John Thune (0:14:38)).
2219 Jimm Phillips and Howard Buskirk, “Dueling House, Senate Spectrum Bill Approaches to Clash Before August Jimm Phillips and Howard Buskirk, “Dueling House, Senate Spectrum Bill Approaches to Clash Before August
Recess,” Recess,” Communications Daily, July 19, 2022, at , July 19, 2022, at
https://communicationsdaily.com/article/view?search_id=595110&https://communicationsdaily.com/article/view?search_id=595110&p=1&id=1310457&BC=bc_633421f8b5575. Congressional Research Service 7 FCC Spectrum Auction Authority: Background and Proposals for Extension Senator Cantwell has also stressed the need for an assessment of spectrum needs to aid long-term planning,20 interagency coordination,21 and consensus on funding initiatives.22 In the past, Senator Cantwell has supported using spectrum auction revenues for rural broadband and 911 improvements.23 Senatorp=1&id=1310457&BC=bc_633421f8b5575.
23 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, https://www.c-span.org/video/?522120-
1/senate-hearing-wireless-spectrum. (See statements of Senators Maria Cantwell (01:42:32)).
24 Senator Maria Cantwell, “Cantwell Demands Stringent Protections for Weather Data, Limits on Spectrum Use,”
press release, December 5, 2019, at https://www.commerce.senate.gov/2019/12/cantwell-demands-stringent-
protections-for-weather-data-limits-on-spectrum-use; see also Letter from Senator Maria Cantwell to FCC Chairman
Ajit Pai on the 5.9 GHz band, November 17, 2020 and Letter from multiple U.S. Senators (including Senator Cantwell)
to FCC Chairman Pai on the FCC Order granting Ligado Networks authority to deploy a terrestrial network, May 15,
2020, at https://www.fcc.gov/chairman-letters-congress.
25 Jimm Phillips and Howard Buskirk, “Spectrum Bill Talks Continue; Cantwell Balks at 18-Month FCC Auction Law
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Cantwell has supported using spectrum auction revenues for rural broadband and 911
improvements.26
Senator Ben Ray Luján, Chair of the Subcommittee on Communications, Media, and Broadband, Luján, Chair of the Subcommittee on Communications, Media, and Broadband,
also favors a longer-term extension of FCC also favors a longer-term extension of FCC spectrum auction authority, and a spectrum package that auction authority, and a spectrum package that
includes development of a spectrum pipeline, enhanced interagency coordination on spectrumincludes development of a spectrum pipeline, enhanced interagency coordination on spectrum planning,,
and funding for 911 improvements and projects to close the digital divide.and funding for 911 improvements and projects to close the digital divide.2724
Other Members favor decoupling the extension of FCC’s spectrum auction authority from other Other Members favor decoupling the extension of FCC’s spectrum auction authority from other
measures being considered for comprehensive spectrum legislation. Senator Roger Wicker, measures being considered for comprehensive spectrum legislation. Senator Roger Wicker,
ranking member of the committee, expressed support for a short-term ranking member of the committee, expressed support for a short-termauction authorization,
followed byspectrum auction authorization to ensure the FCC’s spectrum auction authority does not lapse, but also for more comprehensive legislation in the future that would include a spectrum pipeline more comprehensive legislation in the future that would include a spectrum pipeline
(e.g., specific frequencies for auction), timelines for auction, and provisions to improve , timelines for auction, and provisions to improve
interagency coordination.interagency coordination.2825 In the past, Senator Wicker has supported proposals to use spectrum In the past, Senator Wicker has supported proposals to use spectrum
auction revenues to fund shortfalls in the Secure and Trusted Communications Network auction revenues to fund shortfalls in the Secure and Trusted Communications Network
Reimbursement Program.Reimbursement Program.2926 Senator John Thune, ranking member of the subcommittee Senator John Thune, ranking member of the subcommittee, supports a supports a
short-term authorization, with continued work on a larger spectrum package that includes a short-term authorization, with continued work on a larger spectrum package that includes a
spectrum pipelinespectrum pipeline plan, interagency coordination, and funding for the Secure and Trusted , interagency coordination, and funding for the Secure and Trusted
Communications Network Reimbursement Program.Communications Network Reimbursement Program.30
While many27
Many Members support Members support a comprehensive legislative package, they acknowledge that it
may not be possible to reach an agreement on such a package by September 30, 2022.31 Thus,
some support a short-term, stopgap measure to extend FCC auction authority while deferring
negotiation of a more comprehensive bill.32
On September 27, 2022, Senate leadership released a draft CR that contains language to extend
the FCC spectrum auction authority through December 16, 2022.33 This extension is temporary
and would expire December 16, potentially delaying decisions on spectrum and spectrum auction
revenue, to be decided by future congressional action.
Table 1 presents five policy options for Congress to extend the FCC’s spectrum auction authority,
including possible benefits and challenges of each.
comprehensive spectrum legislation, with differences focused on the details of the package (e.g., spectrum pipeline, spectrum auction revenues) and the duration of a FCC spectrum auction authority extension. If Congress cannot come to an agreement on a broader package or pass a stand-alone spectrum auction authority extension before December 16, 2022, the FCC will be unable to auction spectrum. 20 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. (See statements of Senators Maria Cantwell (01:42:32)). 21 Senator Maria Cantwell, “Cantwell Demands Stringent Protections for Weather Data, Limits on Spectrum Use,” press released, December 5, 2019, https://www.commerce.senate.gov/2019/12/cantwell-demands-stringent-protections-for-weather-data-limits-on-spectrum-use; see also Letter from Senator Maria Cantwell to FCC Chairman Ajit Pai on the 5.9 GHz band, November 17, 2020, and Letter from multiple U.S. Senators (including Senator Cantwell) to FCC Chairman Pai on the FCC Order granting Ligado Networks authority to deploy a terrestrial network, May 15, 2020, at https://www.fcc.gov/chairman-letters-congress. 22 Jimm Phillips and Howard Buskirk, “Spectrum Bill Talks Continue; Cantwell Balks at 18-month FCC Auction Law Extension,” Extension,” Communications Daily, June 29, 2022, at https://communicationsdaily.com/news/2022/06/29/Spectrum-, June 29, 2022, at https://communicationsdaily.com/news/2022/06/29/Spectrum-
Bill-Talks-Continue-Cantwell-Balks-at-18Month-FCC-Auction-Law-Extension-2206280070. (Discusses Senator Bill-Talks-Continue-Cantwell-Balks-at-18Month-FCC-Auction-Law-Extension-2206280070. (Discusses Senator
Cantwell stating that she would like Senate Commerce to weigh in on House legislation, “instead of automatically Cantwell stating that she would like Senate Commerce to weigh in on House legislation, “instead of automatically
backing the House proposals”). backing the House proposals”).
2623 See See, for example, S. 2956 for example, S. 2956.
27; see also Jimm Phillips and Howard Buskirk, “Congress Extends Spectrum Bill Talks Via FCC Stopgap, but Stumbling Blocks Remain,” Communications Daily, October 3, 2022, https://communicationsdaily.com/article/view?search_id=596822&id=1377718 (Discussing Senator Cantwell’s interest in using spectrum auction revenue for middle-mile deployments along municipal rights-of-way, to expand broadband access, as proposed in S. 4763.)
24 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120- “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-
1/1/senate-hearing-wireless-spectrum. (See statement of Senator Ben Ray Lujan (02:10:07)). senate-hearing-wireless-spectrum. (See statement of Senator Ben Ray Lujan (02:10:07)).
2825 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120- “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-
1/1/senate-hearing-wireless-spectrum. (See opening statements of Senator Roger Wicker (00:07:27)). senate-hearing-wireless-spectrum. (See opening statements of Senator Roger Wicker (00:07:27)).
2926 Letter from 34 U.S. Senators, to Senator Schumer and Senator McConnell, September 8, 2022, at Letter from 34 U.S. Senators, to Senator Schumer and Senator McConnell, September 8, 2022, at
https://www.hickenlooper.senate.gov/wp-content/uploads/2022/09/Secure-Networks-Act-Reimbursement-Program-https://www.hickenlooper.senate.gov/wp-content/uploads/2022/09/Secure-Networks-Act-Reimbursement-Program-
Shortfall-Signed.pdf. Shortfall-Signed.pdf.
3027 Ibid. (See statement of Senator John Thune (0:12:54), Senator Luján (00:40:39)).
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Table 1 presents five policy options for Congress to extend the FCC’s spectrum auction authority, including possible benefits and challenges of each. Ibid. (See statement of Senator John Thune (0:12:54), Senator Luján (00:40:39)).
31 Jimm Phillips and Howard Buskirk, “Lawmakers Seen Nearing Deal to Extend FCC Spectrum Auction Authority
Though Dec.,” Communications Daily, September 22, 2022, at
https://communicationsdaily.com/article/view?search_id=565285&p=1&id=1368613&BC=bc_6334365f49151.
32 Jimm Phillips, “Senators Eye FCC Auctions Stopgap, Rip and Replace Funding Alternative Ahead of Hearing,”
Communications Daily, August 2, 2022, at
https://communicationsdaily.com/article/view?search_id=595133&p=1&id=1324091&BC=bc_63343373db16b.
33 See Amendment to H.R. 6833, Division C, Title I, Sec. 101, at
https://www.appropriations.senate.gov/imo/media/doc/H6833AM07.PDF.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Table 1. FCC Spectrum Authority: Congressional Options
Option for Congress
Possible Benefit
Possible Challenge
Approve language in Approve language indrafta
May extend the FCC spectrum auction May extend the FCC spectrum auction
Delays decision-making on many issues Delays decision-making on many issues
CR extending FCC
authority, potentially for a very short
potential subsequent CR
authority while Members negotiate a
that could interfere with spectrum
extending FCC auction
broader spectrum package.
planning.
authority for the could interfere with spectrum planning,
auction authority for the
term, allowing Members to negotiate a
and may force Members to debate the
term of term of the CRthe CR.
broader spectrum package.
issue again in a few months. .
Approve stand-alone bil Approve stand-alone bil
FCC spectrum auction authority would FCC spectrum auction authority would
Many Members have expressed interest Many Members have expressed interest
to extend FCC auction to extend FCC auction
not lapse. not lapse.
in a comprehensive package (e.g., long- in a comprehensive package (e.g., long-
authority, such as H.R. authority, such as H.R.
term spectrum authority, pipeline, term spectrum authority, pipeline,
7783. 7783.
spectrum planning, coordination, spectrum planning, coordination,
programs) similar to the provisions in programs) similar to the provisions in
P.L. 112-96, and may not support the P.L. 112-96, and may not support the
stand-alone bil . stand-alone bil .
Reach agreement on H.R. Reach agreement on H.R.
H.R. 7624 is a comprehensive spectrum H.R. 7624 is a comprehensive spectrum
May not include Senate priorities May not include Senate priorities, and and
7624 through 7624 through
package. package.
negotiations to accommodate negotiations to accommodate
concurrence or concurrence or
amendments could stretch beyond the amendments could stretch beyond the
negotiation. negotiation.
date that the FCC’s spectrum auction date that the FCC’s spectrum auction
While House leadership While House leadership
authority expires. authority expires.
has urged Senate has urged Senate
concurrence on the bil , concurrence on the bil ,
Senate lawmakers have Senate lawmakers have
expressed interest in expressed interest in
negotiating certain negotiating certain
elements. elements.
Grant the FCC Grant the FCC
Would give the FCC and industry Would give the FCC and industry
No opportunity to maintain oversight of No opportunity to maintain oversight of
permanent auction permanent auction
certainty in knowing the FCC has certainty in knowing the FCC has
FCC spectrum auction activity. FCC spectrum auction activity.
authority in legislation. authority in legislation.
permanent auction authority. It may also permanent auction authority. It may also
The FCC, Public The FCC, Public
enable long-term planning at the FCC, enable long-term planning at the FCC,
Knowledge, and others Knowledge, and others
and help to ensure the auction process and help to ensure the auction process
have expressed support have expressed support
is serving the public interest. is serving the public interest.
for congressional for congressional
initiatives giving the FCC initiatives giving the FCC
permanent spectrum permanent spectrum
auction authority. auction authority.
Extend FCC auction Extend FCC auction
Provides continuity for a finite period of Provides continuity for a finite period of
Auction authority lapse on September Auction authority lapse on September
authority in the agency’s authority in the agency’s
time to continue the 2.5 GHz spectrum time to continue the 2.5 GHz spectrum
30, 2022. Since Congress has not yet 30, 2022. Since Congress has not yet
FY2023 appropriations. FY2023 appropriations.
auction. auction.
agreed on appropriations, FCC spectrum agreed on appropriations, FCC spectrum
auction authority would remain auction authority would remain
unauthorized until such appropriations unauthorized until such appropriations
had been made. had been made.
Source: CRS.
CRS.
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Author Information
Jill C. Gallagher Jill C. Gallagher
Patricia Moloney Figliola Patricia Moloney Figliola
Analyst Analystin Telecommunications Policy Telecommunications Policy
Specialist in Internet and Telecommunications Specialist in Internet and Telecommunications
Policy Policy
Congressional Research Service
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FCC Spectrum Auction Authority: Background and Proposals for Extension
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
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Congressional Research Service Congressional Research Service
R47258 R47258 · VERSION1 · NEW4 · UPDATED
10 10
and Proposals for Extension
Jill C. Gallagher
Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions
Analyst Analyst
and is a finite and valuable resource. It is necessary for companies seeking to provide wireless and is a finite and valuable resource. It is necessary for companies seeking to provide wireless
Telecommunications Telecommunications
services, such as radio broadcasting, mobile communications, and satellite services. In 1934, services, such as radio broadcasting, mobile communications, and satellite services. In 1934,
Policy Policy
Congress created the Federal Communications Commission (FCC), an independent agency, to Congress created the Federal Communications Commission (FCC), an independent agency, to
manage nonfederal use of spectrum. The FCC allocates segments of spectrum for various uses, manage nonfederal use of spectrum. The FCC allocates segments of spectrum for various uses,
Patricia Moloney Figliola
such as radio broadcasting, mobile communications, satellite services, and land mobile radio such as radio broadcasting, mobile communications, satellite services, and land mobile radio
Specialist in Internet and Specialist in Internet and
communications. It grants licenses to nonfederal entities to use specific frequencies within those communications. It grants licenses to nonfederal entities to use specific frequencies within those
Telecommunications Telecommunications
bands and sets terms and conditions on use to serve the public interest, avoid interference bands and sets terms and conditions on use to serve the public interest, avoid interference
Policy Policy
between users, and promote the most efficient use of spectrum. between users, and promote the most efficient use of spectrum.
In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses
for rights to use specific frequencies for commercial wireless communications. That authority for rights to use specific frequencies for commercial wireless communications. That authority
was originally due to expire on September 30, 1998, but Congress has extended it several times. The most recent was originally due to expire on September 30, 1998, but Congress has extended it several times. The most recent
extend extend
authority authority
Congressional Research Service Congressional Research Service
link to page 4 link to page 5 link to page 7 link to page link to page 4 link to page 5 link to page 7 link to page
Contents
Introduction ..................................................................................................................................... 1
History of the FCC’s Spectrum Auction Authority ......................................................................... 2
Proposals in the 117th Congress to Extend the FCC’s Spectrum Auction Authority ....................... 4
Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783) ........................
Spectrum Innovation Act of 2022 (S. 4117) .............................................................................. 5
Senate Hearing: “The Future of Spectrum” ..................................................................................... 6
Figures
Figure 1.
Tables
Table 1. FCC Spectrum Authority: Congressional Options............................................................. 9
Contacts
Author Information ........................................................................................................................
Congressional Research Service Congressional Research Service
FCC Spectrum Auction Authority: Background and Proposals for Extension
Introduction
Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions Radio spectrum (“spectrum”) is the continuum of frequencies allocated for radio transmissions
and is a finite and valuable resource. It is necessary for companies seeking to provide wireless and is a finite and valuable resource. It is necessary for companies seeking to provide wireless
services, such as radio broadcasting, mobile communications, and satellite services. In 1934, services, such as radio broadcasting, mobile communications, and satellite services. In 1934,
Congress created the Federal Communications Commission (FCC), an independent agency, to Congress created the Federal Communications Commission (FCC), an independent agency, to
manage nonfederal use of spectrum. The FCC allocates segments of usable and available manage nonfederal use of spectrum. The FCC allocates segments of usable and available
spectrum for various uses, such as radio broadcasting, mobile communications, satellite services, spectrum for various uses, such as radio broadcasting, mobile communications, satellite services,
and land mobile radio communications. It grants licenses to nonfederal entities to use specific and land mobile radio communications. It grants licenses to nonfederal entities to use specific
frequencies within those bands and sets terms and conditions to serve the public interest, avoid frequencies within those bands and sets terms and conditions to serve the public interest, avoid
interference between users, and promote the most efficient use of spectrum. According to the interference between users, and promote the most efficient use of spectrum. According to the
FCC, “Managing the airwaves is arguably the agency’s most important function. Nearly every FCC, “Managing the airwaves is arguably the agency’s most important function. Nearly every
commercial device that transmits a wireless signal on a radio frequency, from AM radios to commercial device that transmits a wireless signal on a radio frequency, from AM radios to
satellites to 5G cell phones, must comply with our rules, from licensing to interference.”1 satellites to 5G cell phones, must comply with our rules, from licensing to interference.”1
In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses In 1993, Congress authorized the FCC to use competitive bidding (i.e., auctions) to grant licenses
for rights to use specific frequencies for commercial wireless communications. That authority for rights to use specific frequencies for commercial wireless communications. That authority
was originally due to expire on September 30, 1998, but Congress has extended it several times. was originally due to expire on September 30, 1998, but Congress has extended it several times.
The most recent The most recent long-term extension in 2012—through September 30, 2022—was granted as part of the extension in 2012—through September 30, 2022—was granted as part of the
(H.R. 7624), which would extend FCC auction authority through March 2024. Among its other (H.R. 7624), which would extend FCC auction authority through March 2024. Among its other
provisions, the bill would require the auction of the 3.1-3.45 provisions, the bill would require the auction of the 3.1-3.45
auction revenues to fund next generation 911 improvements and the Secure and Trusted auction revenues to fund next generation 911 improvements and the Secure and Trusted
Communications Network Reimbursement Program—a program to “rip and replace” untrusted Communications Network Reimbursement Program—a program to “rip and replace” untrusted
equipment from U.S. telecommunication networks. The bill is under consideration in the Senate.equipment from U.S. telecommunication networks. The bill is under consideration in the Senate.
On September 30, 2022, Congress passed and President Biden signed a continuing resolution (CR) that extended the FCC’s spectrum auction authority through December 16, 2022 (P.L. 117-180, Division C, §101). The extension allows the FCC to complete licensing and other activities related to its 2.5 GHz band auction—an auction of frequencies in the 2.5 GHz band that commenced on July 29, 2022, and concluded on August 20, 2022.2 Many Members of Congress have expressed support for extending this authority beyond December 16, 2022, and Members are reportedly debating the term of the extension, specific spending provisions, interagency coordination requirements, and the legislative vehicle for the extension. This report provides a brief history of FCC spectrum auction authority, legislative activity in the This report provides a brief history of FCC spectrum auction authority, legislative activity in the
117th Congress, and a discussion of policy options.117th Congress, and a discussion of policy options.
1 FCC Podcast, 1 FCC Podcast, More than Seven Dirty Words, episode #18, “Going Once, Going Infinitely: How the FCC Went from , episode #18, “Going Once, Going Infinitely: How the FCC Went from
‘Beauty Contests’ to Spectrum Auctions,” January 19, 2021, at https://www.fcc.gov/news-events/podcast. ‘Beauty Contests’ to Spectrum Auctions,” January 19, 2021, at https://www.fcc.gov/news-events/podcast.
2 FCC, “Auction 108: 2.5 GHz Band,” https://www.fcc.gov/auction/108. Congressional Research Service Congressional Research Service
1 1
FCC Spectrum Auction Authority: Background and Proposals for Extension
History of the FCC’s Spectrum Auction Authority
Congress added Section 309(i) to the Communications Act of 1934 in the Omnibus Budget Congress added Section 309(i) to the Communications Act of 1934 in the Omnibus Budget
Reconciliation Act of 1981 (P.L. 97-35),Reconciliation Act of 1981 (P.L. 97-35),
qualified applicants by random selection (i.e., lottery). Under the lottery system, these applicants qualified applicants by random selection (i.e., lottery). Under the lottery system, these applicants
would apply for spectrum licenses and the FCC would randomly assign frequencies to them. would apply for spectrum licenses and the FCC would randomly assign frequencies to them.
However, as stated by the FCC in a 1997 report to Congress, the pre-qualification process itself However, as stated by the FCC in a 1997 report to Congress, the pre-qualification process itself
often took many months (20 months in one case), and some license winners had “no intention of often took many months (20 months in one case), and some license winners had “no intention of
providing service to the public” and instead “were eager to trade their license rights for windfall providing service to the public” and instead “were eager to trade their license rights for windfall
profits.”profits.”
Such profiteering led Congress to grant the FCC authority to conduct auctions to assign spectrum. Such profiteering led Congress to grant the FCC authority to conduct auctions to assign spectrum.
Congress added §309(j) to the Communications Act of 1934 in the Omnibus Budget Congress added §309(j) to the Communications Act of 1934 in the Omnibus Budget
Reconciliation Act of 1993 (P.L. 103-66, §6002),Reconciliation Act of 1993 (P.L. 103-66, §6002),
bidding (i.e., auctions) to grant spectrum licenses.bidding (i.e., auctions) to grant spectrum licenses.
interest and promote specific objectives, such as speeding deployment of new technology and interest and promote specific objectives, such as speeding deployment of new technology and
services to rural regions, increasing competition and diversity among licensees, recovering some services to rural regions, increasing competition and diversity among licensees, recovering some
of the value of this federal resource for the public, and achieving the most efficient use of of the value of this federal resource for the public, and achieving the most efficient use of
spectrum.spectrum.
out requirements as a condition of licensing, the FCC could ensure that spectrum-holders were out requirements as a condition of licensing, the FCC could ensure that spectrum-holders were
ready and able to use the spectrum, to provide services to consumers in all areas, and to enhance ready and able to use the spectrum, to provide services to consumers in all areas, and to enhance
competition. Under this act, the FCC’s auction authority would have expired on September 30, competition. Under this act, the FCC’s auction authority would have expired on September 30,
1998. 1998.
On August 5, 1997, Congress extended the FCC’s auction authority for 10 years through the On August 5, 1997, Congress extended the FCC’s auction authority for 10 years through the
passage of the Balanced Budget Act of 1997 (P.L. 105-33, §3002), allowing the FCC to use passage of the Balanced Budget Act of 1997 (P.L. 105-33, §3002), allowing the FCC to use
competitive bidding for license applications through September 30, 2007. competitive bidding for license applications through September 30, 2007.
The Deficit Reduction Act of 2005 (P.L. 109-171, §3003), enacted February 8, 2006, extended The Deficit Reduction Act of 2005 (P.L. 109-171, §3003), enacted February 8, 2006, extended
FCC auction authority for four years, through September 30, 2011. The act specified that $7.363 FCC auction authority for four years, through September 30, 2011. The act specified that $7.363
billion of proceeds from the authorized auctions be applied to deficit reduction. It also set aside a billion of proceeds from the authorized auctions be applied to deficit reduction. It also set aside a
portion of the proceeds for digital television transition and public safety communications, and portion of the proceeds for digital television transition and public safety communications, and
created the Digital Television Transition and Public Safety Fund.created the Digital Television Transition and Public Safety Fund.
The Digital Television Delay Act (P.L. 111-4, §5), enacted February 11, 2009, extended FCC The Digital Television Delay Act (P.L. 111-4, §5), enacted February 11, 2009, extended FCC
auction authority for one year, through September 30, 2012, to manage the auctions mandated auction authority for one year, through September 30, 2012, to manage the auctions mandated
under P.L. 109-171. under P.L. 109-171.
The Middle-Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96, Title VI) included The Middle-Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96, Title VI) included
several spectrum-related provisions. It established a process for television broadcasters to release several spectrum-related provisions. It established a process for television broadcasters to release
30, 1997, released October 9, 1997, p. 7, at https://wireless.fcc.gov/auctions/data/papersAndStudies/fc970353.pdf. 30, 1997, released October 9, 1997, p. 7, at https://wireless.fcc.gov/auctions/data/papersAndStudies/fc970353.pdf.
finding of public interest, convenience, and necessity solely or predominantly on the expectation of federal revenue. finding of public interest, convenience, and necessity solely or predominantly on the expectation of federal revenue.
Resolution of Cases (Gen. Docket No. 90-264), Notice of Proposed Rulemaking, May 10, 1990, p. 4050, at (Gen. Docket No. 90-264), Notice of Proposed Rulemaking, May 10, 1990, p. 4050, at
https://www.fcc.gov/document/amendment-proposals-reform-comparative-hearing-process-expedite. https://www.fcc.gov/document/amendment-proposals-reform-comparative-hearing-process-expedite.
Linda K. Moore. For further information, congressional readers may contact Jill C. Gallagher or Patricia Moloney Linda K. Moore. For further information, congressional readers may contact Jill C. Gallagher or Patricia Moloney
Figliola. Figliola.
Congressional Research Service Congressional Research Service
2 2
link to page 7 link to page 7 FCC Spectrum Auction Authority: Background and Proposals for Extension
spectrum licensed to them and for the FCC to auction that spectrum for commercial use. It spectrum licensed to them and for the FCC to auction that spectrum for commercial use. It
included provisions to auction certain spectrum and apply revenues from those auctions toward included provisions to auction certain spectrum and apply revenues from those auctions toward
deficit reduction. It also required revenues be used to establish a new agency to manage the deficit reduction. It also required revenues be used to establish a new agency to manage the
public safety broadband network (First Responder Network Authority), to build out that network, public safety broadband network (First Responder Network Authority), to build out that network,
and to fund several new public safety programs and initiatives. The act (§6405) also extended the and to fund several new public safety programs and initiatives. The act (§6405) also extended the
FCC’s auction authority for 10 years, through September 30, 2022. FCC’s auction authority for 10 years, through September 30, 2022.
The Spectrum Pipeline Act of 2015, which was included as Title X in the Bipartisan Budget Act The Spectrum Pipeline Act of 2015, which was included as Title X in the Bipartisan Budget Act
of 2015 (P.L. 114-74), requires the FCC to auction certain spectrum as specified in Section of 2015 (P.L. 114-74), requires the FCC to auction certain spectrum as specified in Section
1004(a) of the act. The act extends FCC auction authority for this spectrum through September 1004(a) of the act. The act extends FCC auction authority for this spectrum through September
30, 2025.30, 2025.
A “spectrum pipeline plan” refers to the federal government selecting specific frequencies for auction and setting the timeline for conducting these auctions. Figure 1 illustrates the timeline of changes to the FCC’s spectrum auction authority, which is due illustrates the timeline of changes to the FCC’s spectrum auction authority, which is due
to expire on September 30, 2022, except for certain spectrum auctioned under the authority of the to expire on September 30, 2022, except for certain spectrum auctioned under the authority of the
Spectrum Pipeline Act of 2015. Spectrum Pipeline Act of 2015.
Congressional Research Service Congressional Research Service
3 3
FCC Spectrum Auction Authority: Background and Proposals for Extension
Figure 1.
Source: CRS. CRS.
Proposals in the 117th Congress to Extend the FCC’s
Spectrum Auction Authority
Extending America’s Spectrum Auction Leadership Act of 2022
(H.R. 7783)
The Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783), introduced on The Extending America’s Spectrum Auction Leadership Act of 2022 (H.R. 7783), introduced on
May 16, 2022, would extend FCC auction authority through March 31, 2024 (i.e., 18 months May 16, 2022, would extend FCC auction authority through March 31, 2024 (i.e., 18 months
from its September 30, 2022, expiration). The House Energy and Commercefrom its September 30, 2022, expiration). The House Energy and Commerce
Communications and Technology approved the bill on June 15, 2022, with bipartisan support. Communications and Technology approved the bill on June 15, 2022, with bipartisan support.
The Spectrum Innovation Act of 2022 (H.R. 7624), introduced on April 28, 2022, was passed by The Spectrum Innovation Act of 2022 (H.R. 7624), introduced on April 28, 2022, was passed by
the House on July 27, 2022 (H.Rept. 117-429), and referred to the Senate Committee on the House on July 27, 2022 (H.Rept. 117-429), and referred to the Senate Committee on
Commerce, Science, and Transportation. The bill, as passed by the House, would extend the Commerce, Science, and Transportation. The bill, as passed by the House, would extend the
FCC’s spectrum auction authority through March 31, 2024 (the same timeline proposed and FCC’s spectrum auction authority through March 31, 2024 (the same timeline proposed and
approved by the House Energy and Commerceapproved by the House Energy and Commerce
Technology in H.R. 7783). Technology in H.R. 7783).
This bill would also specify a process for auctioning a segment of spectrum between This bill would also specify a process for auctioning a segment of spectrum between
combination of uses. Specifically, the bill would allow federal entities operating in the band (i.e., combination of uses. Specifically, the bill would allow federal entities operating in the band (i.e.,
Department of Defense (DOD)) to use funding from the Spectrum Relocation Fund9 for the Department of Defense (DOD)) to use funding from the Spectrum Relocation Fund9 for the
purpose of research and development, engineering studies, economic analyses, activities with purpose of research and development, engineering studies, economic analyses, activities with
respect to reconfiguring systems,10 or other planning activities to make spectrum available for respect to reconfiguring systems,10 or other planning activities to make spectrum available for
nonfederal or shared federal and nonfederal use. Among other things, the bill would establish the nonfederal or shared federal and nonfederal use. Among other things, the bill would establish the
Public Safety and Secure Networks Fund and direct a portion of spectrum auction proceeds for Public Safety and Secure Networks Fund and direct a portion of spectrum auction proceeds for
specific purposes. The bill would provide $3.08 billion in spectrum auction revenues to specific purposes. The bill would provide $3.08 billion in spectrum auction revenues to
supplement the Secure and Trusted Communications Networks Reimbursement Program—a supplement the Secure and Trusted Communications Networks Reimbursement Program—a
program that reimburses telecommunications providers for replacing equipment that poses risks program that reimburses telecommunications providers for replacing equipment that poses risks
to national security and safety.11 Additionally, the bill would also make available $10 billion from to national security and safety.11 Additionally, the bill would also make available $10 billion from
such revenues to improve 911 systems and services. such revenues to improve 911 systems and services.
The Spectrum Innovation Act of 2022 (S. 4117), introduced on April 28, 2022, would auction the The Spectrum Innovation Act of 2022 (S. 4117), introduced on April 28, 2022, would auction the
3.1-3.45 GHz band of spectrum and would extend the FCC’s auction authority to auction this 3.1-3.45 GHz band of spectrum and would extend the FCC’s auction authority to auction this
segment for seven years from the segment for seven years from the date of enactment of the bill. The bill directs the Office of Management enactment of the bill. The bill directs the Office of Management
and Budget to transfer funding from the Spectrum Relocation Fund to federal entities to plan and and Budget to transfer funding from the Spectrum Relocation Fund to federal entities to plan and
conduct studies to facilitate the reallocation, with oversight from the National conduct studies to facilitate the reallocation, with oversight from the National
Telecommunications and Information Administration (NTIA) and the Executive Office of the President. It requires the Department of Commerce (DOC) to identify 200 MHz for reallocation and to work with DOD, FCC, and the White House Office of Science and Technology Policy to make spectrum available for new uses, while also protecting incumbent users. The bill was referred to the Committee on Commerce, Science, and Transportation.
9 As authorized by the Commercial Spectrum Enhancement Act, Title II of P.L. 108-494, the Spectrum Relocation 9 As authorized by the Commercial Spectrum Enhancement Act, Title II of P.L. 108-494, the Spectrum Relocation
Fund provides a centralized and streamlined funding mechanism through which federal agencies can recover the costs Fund provides a centralized and streamlined funding mechanism through which federal agencies can recover the costs
associated with relocating their radio communications systems or sharing the reallocated spectrum. associated with relocating their radio communications systems or sharing the reallocated spectrum.
10 The auction of the 3.1-3.45 GHz band was authorized in the Infrastructure Investment and Jobs Act (P.L. 117-58, 10 The auction of the 3.1-3.45 GHz band was authorized in the Infrastructure Investment and Jobs Act (P.L. 117-58,
§90008(b)); H.R. 7624 proposes to repeal §90008. §90008(b)); H.R. 7624 proposes to repeal §90008.
11 For more information on the program, see CRS Insight IN11663, 11 For more information on the program, see CRS Insight IN11663, Secure and Trusted Communications Networks
Reimbursement Program: Frequently Asked Questions, by Jill C. Gallagher. , by Jill C. Gallagher.
Congressional Research Service 5 FCC Spectrum Auction Authority: Background and Proposals for Extension Senate Hearing: “The Future of Spectrum”
On August 2, 2022, the Senate Committee on Commerce, Science, and Transportation’s On August 2, 2022, the Senate Committee on Commerce, Science, and Transportation’s
Subcommittee on Communications, Media, and Broadband held a hearing, “The Future of Subcommittee on Communications, Media, and Broadband held a hearing, “The Future of
Spectrum.”Spectrum.”
member of the full committee, and Senator John Thune, ranking member of the subcommitteemember of the full committee, and Senator John Thune, ranking member of the subcommittee,
noted the importance of renewing the FCC’s spectrum authority in their opening statements. noted the importance of renewing the FCC’s spectrum authority in their opening statements.
Many Many committee members expressed support for a short-term extension of FCC authority, continued work members expressed support for a short-term extension of FCC authority, continued work
on a long-term spectrum strategy, and enhanced coordination between the FCC and NTIA to on a long-term spectrum strategy, and enhanced coordination between the FCC and NTIA to
balance commercial and federal agency needs.balance commercial and federal agency needs.
Industry witnesses supported approval of a short-term extension to ensure FCC authority does not Industry witnesses supported approval of a short-term extension to ensure FCC authority does not
lapse, especially as the FCC was (at the time of the hearing), conducting the auction of 2.5 GHz lapse, especially as the FCC was (at the time of the hearing), conducting the auction of 2.5 GHz
spectrum. They also asserted that a short-term extension would allow Congress and agency spectrum. They also asserted that a short-term extension would allow Congress and agency
stakeholders time to develop comprehensive spectrum legislation that would, among other stakeholders time to develop comprehensive spectrum legislation that would, among other
things,things,
spend spectrum auction revenues.spend spectrum auction revenues.
argued that a longer-term extension or permanent extension could facilitate long-term planning to argued that a longer-term extension or permanent extension could facilitate long-term planning to
make spectrum available for a variety of users, protect the public interest in spectrum decisions, make spectrum available for a variety of users, protect the public interest in spectrum decisions,
and to ensure spectrum auction revenues benefit public interest objectives.and to ensure spectrum auction revenues benefit public interest objectives.
Media, and Broadband, Media, and Broadband, Future of Spectrum, 117th Cong., 2nd sess., August 2, 2022, at , 117th Cong., 2nd sess., August 2, 2022, at
https://www.commerce.senate.gov/2022/8/future-of-spectrum. https://www.commerce.senate.gov/2022/8/future-of-spectrum.
SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. This link SPAN.org, August 2, 2022, at https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. This link
allows for full text searching of the video, as well as filtering by speaker. allows for full text searching of the video, as well as filtering by speaker.
officer of CTIA, a wireless industry organization (00:23:58)). officer of CTIA, a wireless industry organization (00:23:58)).
auction authority through March 31, 2024auction authority through March 31, 2024
segment of spectrum, segment of spectrum,
Secure and Trusted Communications Networks Reimbursement Program, and Secure and Trusted Communications Networks Reimbursement Program, and provide $10 billion to $10 billion to
improve 911 systems and services. The House requested concurrence from the Senate on July 28, improve 911 systems and services. The House requested concurrence from the Senate on July 28,
2022; the Senate referred it to the Senate Committee on Commerce, 2022; the Senate referred it to the Senate Committee on Commerce, Science, and Transportation.
Cantwell, opposed the 18-month extension in H.R. 7624, and expressed interest in developing a Cantwell, opposed the 18-month extension in H.R. 7624, and expressed interest in developing a
spectrum package that includes a long-term extension, addresses interagency coordination on spectrum package that includes a long-term extension, addresses interagency coordination on
spectrum, and includes Senate Commerce spectrum, and includes Senate Commerce Committee input on policy and funding priorities.19 17 Jimm Phillips and Howard Buskirk, “Congress Extends Spectrum Bill Talks via FCC Stopgap, but Stumbling Blocks Remain,” Communications Daily, October 3, 2022, Congress Extends Spectrum Bill Talks Via FCC Stopgap, but Stumbling Blocks Remain (communicationsdaily.com). 18
Recess,” Recess,” Communications Daily, July 19, 2022, at , July 19, 2022, at
https://communicationsdaily.com/article/view?search_id=595110&https://communicationsdaily.com/article/view?search_id=595110&p=1&id=1310457&BC=bc_633421f8b5575. Congressional Research Service 7 FCC Spectrum Auction Authority: Background and Proposals for Extension Senator Cantwell has also stressed the need for an assessment of spectrum needs to aid long-term planning,20 interagency coordination,21 and consensus on funding initiatives.22 In the past, Senator Cantwell has supported using spectrum auction revenues for rural broadband and 911 improvements.23 Senator
also favors a longer-term extension of FCC also favors a longer-term extension of FCC spectrum auction authority, and a spectrum package that auction authority, and a spectrum package that
includes development of a spectrum pipeline, enhanced interagency coordination on spectrumincludes development of a spectrum pipeline, enhanced interagency coordination on spectrum planning,
and funding for 911 improvements and projects to close the digital divide.and funding for 911 improvements and projects to close the digital divide.
Other Members favor decoupling the extension of FCC’s spectrum auction authority from other Other Members favor decoupling the extension of FCC’s spectrum auction authority from other
measures being considered for comprehensive spectrum legislation. Senator Roger Wicker, measures being considered for comprehensive spectrum legislation. Senator Roger Wicker,
ranking member of the committee, expressed support for a short-term ranking member of the committee, expressed support for a short-term
interagency coordination.interagency coordination.
auction revenues to fund shortfalls in the Secure and Trusted Communications Network auction revenues to fund shortfalls in the Secure and Trusted Communications Network
Reimbursement Program.Reimbursement Program.
short-term authorization, with continued work on a larger spectrum package that includes a short-term authorization, with continued work on a larger spectrum package that includes a
spectrum pipelinespectrum pipeline plan, interagency coordination, and funding for the Secure and Trusted , interagency coordination, and funding for the Secure and Trusted
Communications Network Reimbursement Program.Communications Network Reimbursement Program.
comprehensive spectrum legislation, with differences focused on the details of the package (e.g., spectrum pipeline, spectrum auction revenues) and the duration of a FCC spectrum auction authority extension. If Congress cannot come to an agreement on a broader package or pass a stand-alone spectrum auction authority extension before December 16, 2022, the FCC will be unable to auction spectrum. 20 “Senate Hearing on Wireless Spectrum,” C-SPAN.org, August 2, 2022, https://www.c-span.org/video/?522120-1/senate-hearing-wireless-spectrum. (See statements of Senators Maria Cantwell (01:42:32)). 21 Senator Maria Cantwell, “Cantwell Demands Stringent Protections for Weather Data, Limits on Spectrum Use,” press released, December 5, 2019, https://www.commerce.senate.gov/2019/12/cantwell-demands-stringent-protections-for-weather-data-limits-on-spectrum-use; see also Letter from Senator Maria Cantwell to FCC Chairman Ajit Pai on the 5.9 GHz band, November 17, 2020, and Letter from multiple U.S. Senators (including Senator Cantwell) to FCC Chairman Pai on the FCC Order granting Ligado Networks authority to deploy a terrestrial network, May 15, 2020, at https://www.fcc.gov/chairman-letters-congress. 22 Jimm Phillips and Howard Buskirk, “Spectrum Bill Talks Continue; Cantwell Balks at 18-month FCC Auction Law Extension,” Extension,” Communications Daily, June 29, 2022, at https://communicationsdaily.com/news/2022/06/29/Spectrum-, June 29, 2022, at https://communicationsdaily.com/news/2022/06/29/Spectrum-
Bill-Talks-Continue-Cantwell-Balks-at-18Month-FCC-Auction-Law-Extension-2206280070. (Discusses Senator Bill-Talks-Continue-Cantwell-Balks-at-18Month-FCC-Auction-Law-Extension-2206280070. (Discusses Senator
Cantwell stating that she would like Senate Commerce to weigh in on House legislation, “instead of automatically Cantwell stating that she would like Senate Commerce to weigh in on House legislation, “instead of automatically
backing the House proposals”). backing the House proposals”).
https://www.hickenlooper.senate.gov/wp-content/uploads/2022/09/Secure-Networks-Act-Reimbursement-Program-https://www.hickenlooper.senate.gov/wp-content/uploads/2022/09/Secure-Networks-Act-Reimbursement-Program-
Shortfall-Signed.pdf. Shortfall-Signed.pdf.
Table 1. FCC Spectrum Authority: Congressional Options
Option for Congress
Possible Benefit
Possible Challenge
Approve language in Approve language in
May extend the FCC spectrum auction May extend the FCC spectrum auction
Delays decision-making on many issues Delays decision-making on many issues
Approve stand-alone bil Approve stand-alone bil
FCC spectrum auction authority would FCC spectrum auction authority would
Many Members have expressed interest Many Members have expressed interest
to extend FCC auction to extend FCC auction
not lapse. not lapse.
in a comprehensive package (e.g., long- in a comprehensive package (e.g., long-
authority, such as H.R. authority, such as H.R.
term spectrum authority, pipeline, term spectrum authority, pipeline,
7783. 7783.
spectrum planning, coordination, spectrum planning, coordination,
programs) similar to the provisions in programs) similar to the provisions in
P.L. 112-96, and may not support the P.L. 112-96, and may not support the
stand-alone bil . stand-alone bil .
Reach agreement on H.R. Reach agreement on H.R.
H.R. 7624 is a comprehensive spectrum H.R. 7624 is a comprehensive spectrum
May not include Senate priorities May not include Senate priorities, and and
7624 through 7624 through
package. package.
negotiations to accommodate negotiations to accommodate
concurrence or concurrence or
amendments could stretch beyond the amendments could stretch beyond the
negotiation. negotiation.
date that the FCC’s spectrum auction date that the FCC’s spectrum auction
While House leadership While House leadership
authority expires. authority expires.
has urged Senate has urged Senate
concurrence on the bil , concurrence on the bil ,
Senate lawmakers have Senate lawmakers have
expressed interest in expressed interest in
negotiating certain negotiating certain
elements. elements.
Grant the FCC Grant the FCC
Would give the FCC and industry Would give the FCC and industry
No opportunity to maintain oversight of No opportunity to maintain oversight of
permanent auction permanent auction
certainty in knowing the FCC has certainty in knowing the FCC has
FCC spectrum auction activity. FCC spectrum auction activity.
authority in legislation. authority in legislation.
permanent auction authority. It may also permanent auction authority. It may also
The FCC, Public The FCC, Public
enable long-term planning at the FCC, enable long-term planning at the FCC,
Knowledge, and others Knowledge, and others
and help to ensure the auction process and help to ensure the auction process
have expressed support have expressed support
is serving the public interest. is serving the public interest.
for congressional for congressional
initiatives giving the FCC initiatives giving the FCC
permanent spectrum permanent spectrum
auction authority. auction authority.
Extend FCC auction Extend FCC auction
Provides continuity for a finite period of Provides continuity for a finite period of
Auction authority lapse on September Auction authority lapse on September
authority in the agency’s authority in the agency’s
time to continue the 2.5 GHz spectrum time to continue the 2.5 GHz spectrum
30, 2022. Since Congress has not yet 30, 2022. Since Congress has not yet
FY2023 appropriations. FY2023 appropriations.
auction. auction.
agreed on appropriations, FCC spectrum agreed on appropriations, FCC spectrum
auction authority would remain auction authority would remain
unauthorized until such appropriations unauthorized until such appropriations
had been made. had been made.
Source:
Jill C. Gallagher Jill C. Gallagher
Patricia Moloney Figliola Patricia Moloney Figliola
Analyst Analyst
Specialist in Internet and Telecommunications Specialist in Internet and Telecommunications
Policy Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
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R47258 R47258 · VERSION
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